Course Macro Economics

Presented to : Sir Muhammad Shaiq

Presented by :
Muhammad Tofeeque Zuhaib Ahmed Muhammad Imran Muhammad Waqas Abubakar Siddiqui

Agenda
Introduction/Background
Details of imports

Details of exports Trade balance Growth Conclusion

Introduction/Background
Pakistan is one of those countries who are facing trade

deficit from last many years. Pakistan started facing trade deficit in financial year (FY) 1957-58. Only in financial years 1956-57 and 2003-4 Pakistan has surplus balance of trade. The factual improvement in balance of payments can be seen after the event of September 11, FY2001. Trade deficit is major cause which have very harmful effect on the economy of Pakistan.

Pakistan Bureau of Statistics

Agenda

Introduction/Background Details of Imports

Details of exports Trade balance Growth Conclusion

Major Imports
Machinery(electrical and non-electrical)
Chemicals Transport Equipment & Parts Medical Products Iron, Steel, & manufactures thereof

Petroleum Products
Edible Oils

Five Years detail of Total Imports

(Rs. in Million)

Pakistan Bureau of Statistics

Graphical Presentation of Data

Total Amount (Rs. million)

Years
Pakistan Bureau of Statistics

Cause of trend change in 2010-11

20,704,535

Total Amount (Rs. million)

10,334,496 8,624,124

395,889

28,283 58,870 46,947

67,851

184,075 28,560 46,398 387,463 44,845 39,420 58,669 135,363

44,858 178,424

Items
Pakistan Bureau of Statistics

Agenda

Introduction/Background
Details of imports

Details of exports
Trade balance Growth Conclusion

Major Exports
Rice Fruits Sugar Cotton (raw, yarn, fabrics) Readymade garments Leather products

Medical & Surgical instruments

Jewellery Cement and cement product

Five Years detail of Total Exports

(Rs. in Million)

Pakistan Bureau of Statistics

Graphical Representation of Data

Total Amount (Rs million)

Years
Pakistan Bureau of Statistics

Cause of trend change in period 2009-12

Total Amount (Rs. million)

Items
Pakistan Bureau of Statistics

Agenda

Introduction/Background
Details of imports Details of exports

Trade balance
Growth Conclusion

Five Years detail of Trade Balance

Pakistan Bureau of Statistics

TRADE BALANCE
Years
0 2008-09 -1,339,852 -2,000,000 2009-10 -1,293,517 2010-11 2011-12 -1,898,488 2011-12 P -1,428,499 2012-13 P -1,477,718

-4,000,000

Total Amount (Rs million)

-6,000,000

-8,000,000

-10,000,000

-12,000,000

-14,000,000

-16,000,000

-18,000,000 -18,583,688 -20,000,000

Agenda

Introduction/Background
Details of imports Details of exports

Trade balance

Growth
Conclusion

Five Years Growth Rate

Pakistan Bureau of Statistics

GROWTH (%)
46.96
42.27

1.86

-3.46
2009-10

3.16

3.45

2008-09

2010-11

2011-12

2011-12

2012-13 P

Agenda

Introduction/Background
Details of imports Details of exports

Trade balance
Growth

Conclusion

Conclusion
Forex reserves of Pakistan rapidly decreasing making it

difficult for Government to manage the balance of trade payment. Foreign currency against the home currency is strengthening which results in imports of goods and services becoming more expensive as compared to exports. Devaluing of home currency results in a deficit balance of payments. Consistent flow in trade deficit is due to costly imports of oil, fertilizer, and other items as well as fall in countrys textile sectors exports,